Overview
The "Product costing and cost controlling" scenario describes the process of cost calculation and costs controlling related to the product. The process begins with determining indirect costs by cost center, calculating product cost overheads, assigning a specific production BOM, and calculating the full product standard cost. The scenario uses various sources of information, including actual material prices and standards for material resources used in actual production BOM. The calculated product standard cost provides a regular assessment of manufactured products with standard cost, and after period-end closing provides variance analysis.
Product costing and cost controlling flowchart
- a process group the process belongs to
- a typical business process
- a typical E2E business process scenario
- a typical E2E business process cluster
Links to User Guide
- Plan production overhead standards
- Set prices and resource quantity structure for product costing
- Perform standard cost calculations
- Perform preliminary costing
- Conduct variance analysis
- Settle product cost variances in accounting
Links to Setup Guide
- Basic management accounting capabilities
- Accounting of landed costs of goods purchasing in management accounting
- Accounting of direct production costs in management accounting
- Accounting of indirect production costs in management accounting
- Income accounting in management accounting
- Accounting of selling expenses and cost of goods sold in management accounting
- Accounting of expenses allocated to profitability & cost in management accounting
- Accounting of expenses to purchase fixed assets in management accounting
- Accounting of expenses and profitability & cost in local accounting
- Balance sheet statement accounting
- Accounting of payroll expenses
- VAT accounting